JANUARY 2023

VOlUME 06 ISSUE 01 JANUARY 2023
Shareholders as Directors and Aspects of Fairness for Stakeholders
1Gustav,2Oktavery Parasian Siahaan,3Rodhi Agung Saputra,4 M. Rivaldi,5Alvino Novarisky
1,2,3,4,5Law Faculty University of Lampung, Bandar Lampung, Indonesia
DOI : https://doi.org/10.47191/ijsshr/v6-i1-17

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ABSTRACT

A company is an organization that is set to maximize profit with the smallest expenses, this purpose still embedded in the mindset of every entrepreneur. The Board of Directors, who are also majority and minority shareholders, are concurrent positions that often occur in the practice of a company, by regulation this is not regulated in existing positive laws in various countries. This article is expected to contribute to the development of regulations that specifically regulate the position of the Board of Directors and Shareholders. Because it affects fairness for other stakeholders, the author intends to discuss in this article to find a link between the Board of Directors who are also Shareholders in running the company and aspects of fairness for other stakeholders. The purpose of writing this article is to examine the position of the Board of Directors who is also as Shareholders in fairness theory, while the orientation of this analysis is in the form of theoretical and comparative approaches. The need for intervention from regulators, legislators to make adjustments to the provisions in order to ensure fairness for all stakeholders is realized and distributed.

KEYWORDS:

Corporate; Justice; Directors; Shareholders, Stakeholders

REFERENCES

1) Maeve O’Connell and Anne Marie Ward, “Shareholder Theory/Shareholder Value,” in Encyclopedia of Sustainable Management, ed. Samuel Idowu et al. (Cham: Springer International Publishing, 2020), 3, https://doi.org/10.1007/978-3-030-02006-4_49-1.

2) Blanche Segrestin, Armand Hatchuel, and Kevin Levillain, “When the Law Distinguishes Between the Enterprise and the Corporation: The Case of the New French Law on Corporate Purpose,” Journal of Business Ethics 171, no. 1 (June 2021): 292, https://doi.org/10.1007/s10551-020-04439-y.

3) Magali Fia and Lorenzo Sacconi, “Justice and Corporate Governance: New Insights from Rawlsian Social Contract and Sen’s Capabilities Approach,” Journal of Business Ethics 160, no. 4 (December 2019): 950, https://doi.org/10.1007/s10551-018-3939-6.

4) Friedman, M. (1970, September 13). “The social responsibility of business is to increase its profits.” New York Times Magazine, (September 13, 1970): 113.

5) Maeve O’Connell.

6) Lawrence Lessig, “The New Chicago School,” The Journal of Legal Studies 27, no. S2 (June 1998): 42, https://doiSjåfjell, Beate, and Mark B. Taylor. “Clash of Norms: Shareholder Primacy vs. Sustainable Corporate Purpose.” SSRN Electronic Journal, 2019. doi:10.2139/SSRN.3444050.

7) D.S.H.M.H.L.L.M. Munir Fuady and P.T.C.A. BAKTI, Doktrin-Doktrin Modern Dalam Corporate Law & Eksistensinya Dalam Hukum Indonesia (Citra Aditya Bakti, 2014), 202, https://books.google.co.id/books?id=P5ssDwAAQBAJ.

VOlUME 06 ISSUE 01 JANUARY 2023

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